A new car in the dealer's showroom had a sticker price of $35,900. Sally liked the car but decided she would pay no more than $32,000 for it, otherwise she would do without it. After haggling with the dealer, she purchased the car for $31,500
Did she gain any consumers surplus? If so, how much? If not, why not?
Yes. Consumer surplus is the difference between the highest price a consumer is willing to pay (that is, the value of the good) minus the actual price paid. Sally gained a consumer surplus of $500.00.
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